The Return on Investment Measure of Performance

question 28

Multiple Choice

The return on investment measure of performance:

• A)is never as important a measure of management effectiveness as the amount of net income.
• B)relates dividends paid to the entity's assets.
• C)is calculated using net income as the amount of return.
• D)is calculated by dividing average assets for a period by the amount of net income for the period.

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Definitions:

U.S. Current Account Deficit

A measurement of the country’s international trade where the value of the goods and services it imports exceeds the value of the products it exports.

Gold Standard

A monetary system in which the standard economic unit of account is based on a fixed quantity of gold, historically used by various countries.

Monetary Policy

The process by which the monetary authority of a country, like the central bank, controls the supply of money, often targeting an inflation rate or interest rate to ensure economic stability and growth.

Investments Abroad

Financial allocations by individuals or companies in business interests or assets in foreign countries.